Sohail Cheema, a 35-year-old bus driver from Wolverhampton, has been handed a suspended prison sentence and a 10-year director ban after illegally claiming £30,000 in Covid-19 Bounce Back Loans.
How the fraud was carried out
Cheema applied for two £15,000 Bounce Back Loans from separate banks in 2020, falsely stating that his company, Sohail Cheema Limited, had a turnover of £60,000. However, the company was not actually trading; it had been set up solely for him to gain agency employment as a self-employed bus driver.
Upon receiving the funds, Cheema transferred the entire amount out of his business bank accounts on the same day. The money was moved to personal accounts belonging to himself and his wife, and later formed part of a £90,000 payment to a third party in August 2021.
Insolvency Service investigation
The Insolvency Service found that there was no evidence any of the £30,000 was used for the economic benefit of the business, as required under the scheme. Chief Investigator David Snasdell said: "Cheema deliberately made two fraudulent applications for Bounce Back Loans, knowing full well he was not entitled to either. He overstated his company’s turnover and, on the same day the money arrived, transferred it all out of his business accounts. Not a single penny was used to support his business as the scheme required."
Court outcome
Cheema, of Richmond Road, Wolverhampton, admitted two counts of fraud by false representation and one count of concealing, disguising or converting criminal property. At Wolverhampton Crown Court on June 29, he was sentenced to two years in prison, suspended for two years. He was also disqualified as a company director for 10 years, ordered to complete 150 hours of unpaid work, and made subject to a 20-day rehabilitation activity requirement.
Details of the fraudulent applications
Cheema opened a business bank account with the sole purpose of applying for a Bounce Back Loan in May 2020. Over the following weeks, he sent four messages to the bank asking when he could apply and claiming his company was in "desperate need" of Covid support. In July, he applied for a £15,000 loan, stating a turnover of £60,000—far more than his business ever made. He transferred the entire amount to personal accounts on the same day.
While waiting to hear back from the first bank, Cheema opened a second business account at a different bank. Knowing he was not entitled to another loan, he made a second application, again falsely claiming a £60,000 turnover, and received another £15,000 later that month. Again, the full amount was cleared from the account on the day it arrived.
Liquidation and recovery
Sohail Cheema Limited went into liquidation in May 2021. The Insolvency Service stated it will not seek to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002. Snasdell added: "Bounce Back Loans were a lifeline for genuine businesses struggling through the pandemic, funded by the taxpayer. This case is a further reminder that the Insolvency Service will continue to pursue those who exploited Covid support schemes, and that doing so carries serious consequences."
